Greens strike deal to pass backpacker tax

Farmers are breathing a sigh of relief after an eleventh-hour deal between the government and the Greens secured a 15 per cent tax rate for backpackers, ending an 18-month long saga of uncertainty.

But the government is facing criticism because it will lose $275 million despite gaining a higher tax rate with the support of the minor party.

The last-minute deal brokered on the year's final parliamentary sitting day will allow backpackers to keep 65 per cent of their superannuation at a cost of $55 million and includes a $100 million boost to Landcare projects.

It will raise the same amount of revenue as a 13 per cent tax rate.

The Greens hailed it as a common sense victory for farmers.

"We've ensured that backpackers will continue to come to this country and provide the really important workforce that this country needs," leader Richard Di Natale said.

Growers were relieved to get certainty, lauding the Greens for talking sensibly with the government which had been one vote short of passing the rate in the senate.